Digital Inclusion and Affordability: Addressing the High Cost of Data in Nigeria’s Telecom Sector

By Ifeoma Ben, LLM; MBA

In recent months, Nigeria’s telecommunications landscape has experienced significant shifts, particularly concerning data affordability and digital inclusion. The Nigerian Communications Commission (NCC) approved a 50% increase in telecom service tariffs in January 2025, marking the first adjustment in over a decade. This decision was influenced by escalating operational costs faced by service providers, including inflation and currency devaluation.

Impact of Tariff Hikes on Data Plans

Following the NCC’s approval, major telecom operators have revised their data pricing structures:
• MTN Nigeria: The 15GB data plan increased from ₦4,500 to ₦6,500, while the 20GB plan rose from ₦5,500 to ₦7,500. Larger packages saw steeper hikes; for instance, the 1.5TB 90-day package surged from ₦150,000 to ₦240,000. 
• Airtel Nigeria: Adjustments include the 10GB plan now priced at ₦4,000, up from ₦2,500, and the 18GB plan at ₦6,000, previously ₦4,000. Call rates also increased to 25 kobo per second from about 18 kobo per second.

Comparative Data Costs in Africa

Despite these increases, Nigeria’s data prices remain relatively competitive within the African context. As of February 2025, the average cost for 1GB of data in Nigeria is approximately $0.66, compared to Ghana at $0.85 and Ethiopia at $0.93. In contrast, South Africa’s 1GB data plan averages $8.41, highlighting Nigeria’s relatively affordable data rates.

Challenges to Digital Inclusion

The recent tariff hikes pose challenges to digital inclusion:
• Declining Internet Subscriptions: Data indicates a 15% drop in internet subscriptions in 2024, from 163.83 million in December 2023 to 139.28 million by December 2024.
• Public Outcry and Protests: The Nigeria Labour Congress (NLC) has rejected the tariff increase, labeling it “insensitive and unjustifiable,” and has planned nationwide protests to demand its suspension.

Strategies for Enhancing Digital Affordability

To mitigate the impact of rising data costs and promote digital inclusion, several strategies can be considered:
• Infrastructure Investment: Enhancing network infrastructure can reduce operational costs over time, potentially leading to more affordable data services.
• Policy Interventions: Government subsidies or tax incentives for telecom operators could offset operational expenses, allowing for more consumer-friendly pricing.
• Promotion of Competition: Encouraging new entrants into the telecom market can foster competitive pricing, benefiting consumers.

In conclusion, while Nigeria’s data prices remain relatively affordable compared to other African nations, the recent tariff hikes present challenges to digital inclusion. Addressing these issues requires collaborative efforts between regulators, service providers, and consumers to ensure that the benefits of digital connectivity are accessible to all Nigerians.

Ifeoma Ben is a Partner at The Law Suite and the Editor-in-Chief of Lawhauz Magazine and can be reached on 08033754299